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AT&T launching home security, automation service

AT&T is plunging big time into home security and automation. The company launches AT&T Digital Life in 15 U.S. markets Friday, with 50 markets in all promised by the end of the year. "We want to make this our

NEW YORK — AT&T is plunging big time into home security and automation. The company launches AT&T Digital Life in 15 U.S. markets Friday, with 50 markets in all promised by the end of the year.

"We want to make this our next billion dollar business," says Glenn Lurie, head of AT&T's Emerging Devices team, who hopes AT&T's entry will disrupt the $18 billion market.

According to Lurie, the home security industry today has only about a 20% market penetration with home automation penetration a mere 1%. That makes this a "99% opportunity," he says.

At the crux of the customizable Digital Life offering is around-the-clock home security monitoring, available as part of a $29.99 a month "Simple Security" pricing plan. You will have to also pay $149.99 for equipment and installation. If there's a break-in or fire, AT&T monitors will alert the local police and fire departments. Included in the Simple Security plan is a wireless keypad, keychain remote control, recessed sensors and an indoor siren.

Extra Premium packages can get you even more: automated door locks that can be operated remotely, and live video cameras that function inside and outside the house. You can also purchase a package for detecting water leaks and another for shutting off water at the main source if need be. Via an optional energy package, you can control appliances, lights and thermostats remotely. In some but not all cases, you can use existing equipment in your house with the AT&T system.

Technology analyst Avi Greengart of Current Analysis says, "Home automation is an industry that has long been `just about to take off.' The technology has always been cool, and now it is much more accessible than it has been in the past."

The expectation is that you'll control everything from afar by downloading an app onto your iOS, Android or Windows smartphone and/or tablet. It doesn't matter if AT&T is your chosen wireless provider or if you use devices that run on a rival network. For example, you can set it up so that pressing a button on your phone when you leave the house, automatically lowers the thermostat, turns off the lights, locks the doors and turns on the alarm. (In 2010, AT&T bought a home automation tech company called Xanboo.) You can also control and monitor your devices or particular areas of your house and receive custom alerts online.

One of the most promising aspects of AT&T Digital Life is that you can order and customize the entire package online, rather than making a phone call and waiting for a guy to come to your house to do a site survey. Of course, you can also buy Digital Life services at an AT&T Store. Lurie says that in trying to keep everything simple, AT&T has learned from its longtime partnership with Apple.

The AT&T installers who show up at your house will have extra gear in their truck—which doubles as "mobile store" if you want to add and install a package that you didn't initially order. Lurie says AT&T will even summon a plumber if need be, should you choose at the last minute to purchase the water control package, which costs an additional $9.99 a month, plus installation.

Can AT&T pull this off?

"There's a lot to like — a single point of contact for installation, clear pricing, and promises of more innovation to come," says analyst Greengart. "It isn't obvious that consumers are looking to wireless carriers for home security or home automation, but AT&T is gambling that it can stretch its brand and take advantage of its retail presence."

The initial launch markets for Digital Life are Atlanta, Austin, Boulder, Colo., Chicago, Dallas, Denver, Houston, Los Angeles, Miami, Philadelphia, Riverside, Calif., San Francisco, Seattle, St. Louis, and parts of the greater New York City area.